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How to choose a credit card and not get into debt

Almost everyone has credit cards tightly in modern life. A credit card is a useful tool and a financial airbag, but its proper use depends on the holder’s self-discipline. Together with Citibank we tell you what to look for when issuing a card, and why it is advantageous to use a 110 days without interest credit card.

Grace period

Grace period – the ability to legally avoid paying interest. In most banks, it is 50 days: 30 days to make purchases with a card and 20 days to pay off debt. Debt must be paid on time and in full. Otherwise, high interest is accrued, which will have to be paid. Unlike other banks, Citibank offers its customers a long grace period. The name of the credit card is “110 days without interest” saying – the card allows you to make daily purchases for as much as four months without any overpayments and additional interest. The first purchase is the starting point of the grace period without interest. Each month, a minimum loan payment is required – 4% of the current debt amount. Once you pay the full amount of the debt, the grace period will resume, and the card will again be available for purchases on favorable terms. In addition, the grace period without interest affects money transfers and cash withdrawals.

Credit limit

Credit limit – the maximum amount of money that the bank is ready to lend to the client. The limit consists of various indicators and factors: age, place of work, income, length of service, property, credit history. If desired, the client can increase the approved limit, but subject to a number of conditions: frequent use of credit cards, payment of everyday purchases, timely payments and the absence of delays in payment. The card “110 days without interest” gives a large credit limit – up to 60,000 dollars. In case of unforeseen situations or unplanned purchases, you do not have to borrow from friends or wait until your salary. The card will be able to quickly help out, and return the borrowed funds in 110 days will not be a particular problem.

Cash withdrawal

Cash withdrawals are another important consideration when choosing a credit card. However, most often banks charge a commission for this operation and it becomes unprofitable to use a credit card for these purposes. Also, some banks do not have a grace period when withdrawing cash, and they immediately begin to charge large percentages. Also if have another option Usaa Routing Number, There are banks with interest-free cash withdrawals, but in this case there are limits on small amounts. With a credit card “110 days without interest”, you can withdraw up to 600,000 dollars a month and send transfers to other cards in the month of issuing the card and the whole next month.

Loyalty Programs and Bonuses

Discounts and bonuses on credit cards come in many forms. For “110 days without interest” credit card holders, special discounts and cashback are provided from partners of the bank and Mastercard payment system. You will be able to take part in loyalty programs from partners. Travelers will be attracted to discount offers on airline tickets and home reservations, and shopaholics will be discounted at online stores. The full catalog of partners is presented on the Citibank website. Convenient filtering by category is available.

Service

Service – the annual cost for using the service. Service charges are debited once a month. Most banks offer a free credit card service in the first month. However, then the conditions are tightened, and customers are forced to pay a commission that varies from 600 to 6000 dollars per year. A significant advantage of the card “110 days without interest” is a free service, which applies to the entire duration of the card. The offer is limited. You need to have time to apply for a card before March 31, 2020.

Design and delivery

A 110 days without interest credit card is easy to get without loss of time and paperwork. An application for a card is made out on the site. After two minutes, the client finds out the decision of the bank. In the case of a positive response, the card can be obtained either at the bank’s office, or arranged for free delivery by courier in any city. Upon receipt, you will need a passport.

So that the credit card does not become a source of problems and is comfortable to use, we recommend that you observe two basic rules:

  • Carefully consider the need for each purchase. Impulsive spending is the main enemy of a prudent approach to finance. Remember that credit money is not yours and you will have to repay it. Spend exactly as much as you can give.
  • Pay debts on time. Then there is no risk of getting interest and fines. If you can repay the debt before the end of the grace period, be sure to use it. The advice is especially relevant if the payment date falls on weekends or holidays, as the bank may not process the transaction immediately.

Top 10 Tips for Those Who Need a Credit Restructuring

When they took a loan, everything was fine, but life is so arranged that white stripes alternate with black ones in it. For any borrower, the day may come when there is nothing to pay on loans. There can be many reasons: loss of work, illness, addition to the family. In any case, the most real solution to the problem will not be an attempt to hide from the debtor, but a trip to the bank, with supporting documents and a request to restructure the loan. This will not completely solve the problem, but it will allow you to delay payments, reduce debt, and at the same time maintain the purity of your credit history by showing yourself to be a bona fide borrower. Bank employees can offer ten ways to restructure a loan.

1. Renew loan

In this case, the reduction of the financial burden on the borrower occurs due to a decrease in the amount of the monthly payment, but the term of payments is significantly increased. That is, the time to repay the debt is stretched, new dates for the restructuring of the loan are indicated in the appendix to the contract. Such an opportunity to simplify the calculation can be taken into account in bank documents, but not mentioned in the original contract. Basically, this method is used if the borrower had an unforeseen situation and he temporarily lost the opportunity to make the required monthly instalments. Good faith customers who have been discussed in this organization for a long time can get a chance for an extension. Before concluding an agreement, it is necessary to carefully study the proposed terms and soberly assess their material capabilities.

2. Go on vacation

So the bank called the grace period, which suggests different options for solving problems with debt payments. A conscientious borrower may go for a “credit vacation” for the first time faced with serious financial difficulties. A debtor who has already received a refusal to restructure may be refused in this form. The debtor receives a deferment for a period of several months to six months, and at this time he pays exclusively interest that runs onto the body of the loan or payments are generally “frozen” (for example, if the borrower is seriously ill). This type is more profitable, only payment terms are transferred here, interest does not increase and additional amounts are not accrued.

3. Change currency

The biggest trouble for the debtor are loans taken in foreign currency. The peak of calls for this type of restructuring comes after the fall in the value of national money. But experts recommend making such a statement on the eve of such an event when only the first prerequisites appear.if you want change currency through bank to use usaa routing number In this case, the customer’s benefit consists in lowering interest on the loan (rates on foreign currency loans are always lower than offers for money circulating in the country). However, this species is not the most popular because of fears of losing even more on the fall of the course.

4. Lower interest rate

Here the personality of the borrower plays an important role, or rather, the presence of a “crystal clear” credit history. The point is to recalculate interest, as a result of which each month you will need to pay less, which will help out if there are gaps in the family budget. Usually it’s possible to lower the rate by a couple of percent, but keep in mind that the reduction will not be for the whole loan, but for a certain period. And this does not mean that the amount of debt will decrease, on the contrary, later it will be necessary to overpay, giving the bank more than was expected at the conclusion of the contract.

5. Reduce monthly payment

In terms of meaning and effectiveness, this type is similar to the procedure for extending a loan; it is proposed to help repay a debt, allowing you to prevent regular payments. Moreover, in this case, credit hysteria does not deteriorate, but the bank nevertheless receives its funds and interest back. This is a temporary benefit for the client, allowing you to find the time to resolve financial troubles. But on the other hand, the final, deferred, amount of payments may become larger than initially, because the interest in this case remains the same.

6. Write off the penalty

The most difficult way in matters of debt restructuring is applied in case of debtor’s financial insolvency. If the amount of the debt is such that it makes no sense to get involved in a lawsuit, and even if the case is won, there will be nothing to take from the losing party, the cancellation of the penalty is applied. Interest and penalties may be cut off depending on the particular case, but it happens that the amount of the main loan decreases. If the client is not at all able to fulfil his financial obligations, he has the right to begin the process of declaring himself bankrupt.

7. Come up with a comprehensive program

In the individual case, after considering the application for payment problems submitted by the client, employees can offer a comprehensive solution to the problem by combining several types of loan restructuring. For example, applying the extension of the loan repayment period, changing the loan currency and cancelling penalties. However, this option is used extremely rarely.

8. Sign a new contract

Sometimes the bank and the client enter into a new agreement by applying a comprehensive program that allows the borrower to continue paying the debt on gentle terms with over-payment without). Moreover, the bank may act as an initiator and offer, instead of drawing up an amendment to the previous loan agreement, to sign a new one with different rules.

9. To remove fines

The elimination of fines that increase the loan that is already too heavy for the debtor is also considered one of the types of restructuring used. Typically, the amount runs in when you skip payments, the amount and mechanism are always indicated in the contract. Turning to the organization, the client has the right to ask for the cancellation of the imposed penalty amounts. Often this measure is part of a comprehensive program that is applied individually to each borrower.

10. Offer refinancing

If the client did not agree with the bank or none of the types of loan restructuring approached him, then you can try to achieve refinancing. In this case, there will be re-lending on more favorable terms for the borrower and the monthly volume of payments will decrease, and interest will also be lower. The main thing is that this will reduce the financial burden and accelerate the payment of debt.